CHINA CINDA (01359) rose more than 9% in late trading, with a gain of 7.81% at the time of writing, reaching HK$1.38 and a turnover of HK$396 million. The surge follows an earlier announcement by China International Capital Corporation (CICC) regarding its plan to merge with Dongxing Securities and Cinda Securities through a share swap.
Great Wall Securities noted that the merger could enhance CICC's debt resolution capabilities in the AMC sector, while also expanding its wealth management business. Shenwan Hongyuan released a research report stating that CHINA CINDA, the largest shareholder of Cinda Securities, is a leader in China's non-performing asset industry. Its core businesses include distressed asset acquisition and restructuring, debt-to-equity conversions, and other non-performing asset operations.
As a key financial subsidiary of CHINA CINDA, Cinda Securities holds a unique advantage in distressed asset disposal and special asset investment banking, such as bankruptcy restructuring. The merger could provide CICC with opportunities to expand its special asset management business and deepen its debt restructuring operations.
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